![]() spiked during late 2020 and again in early 2021 (Dezenger and Monga 2021). ![]() receive for their logs did not go up when lumber prices in the U.S. This article examines recent developments in Montana’s forests and wood products industry and presents some comparisons with other parts of the United States.Ī recent article in the Wall Street Journal did an excellent job describing why the prices that landowners in the Southeast U.S. Forest Service publications and journal articles. We collect data from the mills and loggers themselves, aggregate and analyze economic data from state and federal agencies, follow articles in the popular press, and summarize and share that information through outlets like the Montana Business Quarterly, U.S. The Bureau of Business and Economic Research has been measuring and reporting on Montana’s wood products industry since the 1970s. If your think better data can make your construction cost estimates more accurate, schedule a one-on-one demo with our team to go over your upcoming project details.Bill Calovis watches as lumber is loaded onto his truck at the B&J Sawmill in Reed Point. Costs available for each county are pulled from nearly 1,000 suppliers nationwide. Others are creating variable rate contracts to ensure the delivery of materials before the price is negotiated, betting on lower rates in the future.Įvery 1build construction estimating software subscription comes with access to real-time, local material and labor data. ![]() Some contractors are also looking to lock in low lumber rates for larger upcoming projects. “Low rental occupancy rates and rising rents give multifamily developers confidence to continue building despite rising costs for land, labor and materials,” said NAHB Chief Economist Robert Dietz. Even with some demand waning due to higher interest rates, there is still a strong need for home renovations and new residential construction.Īccording to the National Association of Home Builders (NAHB), apartment construction growth is far outpacing single-family building in all regional geographies. Residential inventory, including single-family and multifamily homes, is still historically low. How will lower lumber prices impact residential contractors? Which cities have the lowest cost of lumber?Īccording to the 1build database, we are seeing the lowest lumber prices in these areas.ġbuild data pulled June 2022 for 2×4 16’ Douglas Fir. While inflation will still keep the cost of lumber (and the gasoline needed to ship it) above pre-COVID numbers, it looks like the highest lumber prices of the year are behind us. Supply chain complications are also beginning to resolve as trucking, rail, and shipping freight are able to deliver lumber to the highest areas of demand. Lumber prices are forecast to settle over the next six months in the $450 to $600 range, with enough pent up housing construction demand to keep prices from plummeting or crashing the lumber market. Other raw construction materials, like glass, aluminum, and copper, also saw price fluctuations but with lumber’s structural importance in the housing market, a financial bubble expanded. When mortgage interest rates declined to their lowest levels in decades-and thus trading futures rose in tandem with housing starts-lumber production couldn’t meet the sudden peak in demand and material prices. Global lumber companies began stalling production in 2020 as they faced uncertain housing markets and transportation fiascos in trucking and rail. Lumber prices are falling fast, but why did they skyrocket in the first place? Can we blame a pandemic? Partially. Why did lumber prices climb so high to begin with? How will lower lumber prices impact residential contractors?.Which cities have the lowest cost of lumber?.Why did lumber prices climb so high to begin with?.How did we get here and what do lower prices mean for contractors? Let’s answer some questions. Tumbling 65% from their highest mark, the national cost of lumber is now sitting around $600 per thousand board feet, depending on the region. How does the cost of lumber impact local contractors?īuilders-especially those in the residential market-have watched daily lumber prices creep up (and sometimes skyrocket), with prices peaking at $1,733 per thousand board feet in 2021. ![]() How does the cost of lumber impact local contractors?.
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